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Norway is increasingly sceptical about outsourcing

Read the full article in Norwegian.

PA sourcing expert, Tom Krohn, has been quoted in an article in Finansavisen drawing on the findings of an annual IT sourcing survey by PA Consulting Group and Whitelane Research. The survey is based on responses from more than 300 participants in organisations that spend the most on IT in Norway, Sweden, Denmark and Finland. 

The article outlines how just 2% of Norwegian businesses that buy outsourcing services are dissatisfied with the service, but want to reduce their level of outsourcing. Tom says: “It is striking to see how quickly Norwegian companies have switched their attitudes, compared to last year, to view outsourcing in a negative light.” Tom believes this is related to a number of negative media reports about outsourcing in the Norwegian press over the last year and points out cases such as NRK and DNB.  

The article goes on to highlight that 43% of Norwegian respondents say they plan to outsource more in the coming years – an 11% decrease compared to last year. This is compared to an 18% rise in Finland and 3% rise in Denmark. 

But Tom believes Norway’s desire to outsource more will pick up in the long run: “We think the negative change of mood is temporary. Outsourcing of IT services provides major cost savings and better service for customers, and we are confident that the outsourcing trend will continue unabated in the coming years.”

The survey also reveals that innovation, for the first time, is about to become a major driver to outsourcing in Norway. 19% of respondents said innovation is one of the three main drivers to outsourcing as it will help businesses to concentrate on their core business, reduce costs and gain better access to resources. 

Tom concludes: “In Norway, we see accessing expertise and focusing on core business as the biggest drivers to outsourcing – overtaking cost reduction which was previously the main driver.”

PA Consulting Group in Norway

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